Please use this identifier to cite or link to this item:
Author(s): de Mello-Sampayo, F.
de Sousa-Vale, S.
Camões, F.
Gomes, O.
Date: 2012
Title: Protectionism under R&D policy: innovation rate and welfare
Volume: 39
Number: 1
Pages: 106-124
ISSN: 0144-3585
Keywords: Portugal
Government policy
Fiscal policy
International investments
Research and development
Endogenous growth
Foreign direct investment
Abstract: Purpose – The purpose of this paper is to explain how eventual pressures from national lobbies may lead governments to shift from an optimal into a non‐optimal innovation policy. Design/methodology/approach – A theoretical model is developed in order to examine and explain the growth and welfare effects of optimal and non‐optimal innovation policies. The non‐optimal policy corresponds to a subsidy for national innovators that is equivalent to an optimal policy of incentives (tax cuts) to foreign investors. Since we are assessing what can nationals do with the support that could be oriented to foreign firms, we are measuring what the economy loses for not supporting foreign firms. Findings – The authors find welfare loss when supporting national R&D instead of foreign R&D and conclude that the same support given to innovation can produce strikingly different outcomes depending on who receives the support. Practical implications – The analysis allows the impact of the inefficiency caused by policies that are not sound, from a strictly economic point of view, to be measured. Originality/value – The originality of the paper is related to the assessment of the implications and to the measurement of the effects of non‐optimal R&D policies.
Peerreviewed: Sim
Access type: Open Access
Appears in Collections:BRU-RI - Artigos em revistas científicas internacionais com arbitragem científica

Files in This Item:
File Description SizeFormat 
post_print_JEconomicStudiespostprint.pdf300,77 kBAdobe PDFView/Open

FacebookTwitterDeliciousLinkedInDiggGoogle BookmarksMySpaceOrkut
Formato BibTex mendeley Endnote Logotipo do DeGóis Logotipo do Orcid 

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.